Press Releases - Full Year Results 2022/23

Full Year Results 2022/23

15 June 2023

Record profit for 20^th consecutive year

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future for everyone, every day, today announces its full year results for the 12 months to 31 March 2023.

Financial Highlights

Record revenue, Adjusted¹ Profit, and strategic investment

• Record revenue, up 21%, and 10% on an organic constant currency⁷ basis.
• 20th consecutive year of record profit: Adjusted¹ Profit before Taxation up 14%; up 3% on an organic constant currency⁷ basis.
• Statutory Profit before Taxation down 4%; principally reflected in non-recurrence of a gain on disposal of £34.0m in the prior year; up 8% excluding this gain.
• Broad-based revenue growth in all sectors and regions, including on an organic constant currency⁷ basis; Adjusted¹ profit growth in all sectors. 
• Continued high returns: Return on Sales⁴ of 19.5% and ROTIC⁵ of 14.8%. Expect FY 2024 Return on Sales⁴ to increase to approximately 20%.
• Cash conversion of 78% (90% in the second half of the year); strong balance sheet, with net debt/EBITDA of 1.38x (2022: 0.74x), underpins investment in organic growth and acquisitions.
• Record strategic investment of over half a billion pounds to support our future growth: 
  • Seven acquisitions completed in the year for a maximum total consideration of £397m; two further acquisitions completed since the period end for a maximum total consideration of approximately £57m; a healthy acquisition pipeline across all sectors.
  • R&D expenditure up by £17m to £103m, representing 5.5% of revenue
  • Increased investment in technology by £7m to £18m
• Total dividend per share for the year up 7%; 44th consecutive year of dividend growth of 5% or more. 

1. Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items and profit or loss on disposal of operations, totalling £69.8m (2021/22: £11.8m). See note 1 to the Results for details.
2. Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items, profit or loss on disposal of operations and the associated taxation thereon and, in 2022, the increase in the UK’s corporation tax rate from 19% to 25%. See note 2 to the Results for details.
3. Total dividend paid and proposed per share, comprising interim dividend of 7.86p per share and proposed final dividend of 12.34p per share.
4. Return on Sales is defined as adjusted¹ profit before taxation from continuing operations expressed as a percentage of revenue from continuing operations.
5. Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted¹ Profit as a percentage of average Total Invested Capital.
6. Net debt is defined as Borrowings plus lease liabilities net of Cash and bank balances.
7. Organic constant currency measures exclude the effect of movements in foreign exchange rates on the translation of revenue and profit¹ into Sterling, as well as acquisitions in the year following completion and disposals.
8. Adjusted¹ profit before taxation, Adjusted² Earnings per Share, organic growth rates, Return on Sales⁴, ROTIC⁵ and net debt⁶ are alternative performance measures used by management. See notes 1, 2 and 3 to the Results for details.
9. Adjusted¹ operating profit before central administration costs after share of associate.

A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com. The webcast of the results presentation will be available on the Halma website later today: www.halma.com

NOTE TO EDITORS

Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day. Its purpose defines the three broad markets it operates in:

• Safety - Protecting people's safety and the environment as populations grow, and enhancing worker safety.
• Environment - Addressing the impacts of climate change, pollution and waste, protecting life-critical resources and supporting scientific research.
• Health - Meeting the increasing demand for better healthcare as chronic illness rises, driven by growing and ageing populations and lifestyle changes.

Halma employs over 7,500 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100 index.

Halma is named as one of Britain’s Most Admired Companies and has retained its No. 1 ranking in the Engineering sector over the past four years.

You can view or download copies of this announcement and the latest Half Year and Annual Reports from the website at www.halma.com or request free printed copies by contacting [email protected].

This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.

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